Thailand was thrust into deeper political crisis after the Constitutional Court dismissed Prime Minister Paetongtarn Shinawatra for ethics violations, setting off the search for a third leader in two years.
The nine-member court said Paetongtarn violated constitutional provisions on ethical standards during a phone call in June with former Cambodian leader Hun Sen about a border dispute. The judges said her remarks on the call, which were leaked, undermined the pride of the premiership and the nation while prioritising her political interests. The 6-3 decision is final and not open to appeal.
Thailand’s benchmark stock index fell as much as 1.1%, while the baht lost 0.2% against the US dollar.
Paetongtarn, 39, is the third member of the influential family of Thaksin Shinawatra to be forced from power before finishing a term.
The ruling coalition helmed by Shinawatra-backed Pheu Thai Party may now push its sole remaining eligible candidate, Chaikasem Nitisiri, for prime minister. Under the Thai constitution, a prime minister is selected through a parliamentary vote.
Paetongtarn’s removal throws into doubt an accommodation reached between Thaksin and his rivals, which saw the Pheu Thai join with conservative parties to form a government. The deal helped him return to Thailand after 15 years in self-imposed exile after the 2023 general election.
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Foreign investors have sold a net $2.3 billion of Thai stocks this year as near-constant political instability worsens the outlook for an economy that has posted an average of 2% annual growth in the past decade, far behind regional peers such as Indonesia and the Philippines.
Paetongtarn had been suspended since July 1 while the court reviewed the case. Her dismissal deepens political uncertainty in Thailand, where the conservative establishment has repeatedly used legal rulings to weaken elected governments, disband popular parties, and maintain military-backed influence.
The case against Paetongtarn arose from a petition by a group of senators accusing her of violating ethics rules during her mid-June phone call with Hun Sen, who’s had close ties to her father, ex-premier Thaksin Shinawatra. As the border dispute between the countries escalated, Hun Sen released a recording of the call, in which Paetongtarn appeared deferential to him and critical of Thailand’s military.
Public backlash
Her remarks drew backlash from the public and conservative politicians — who accused her of bowing to a foreign leader and undermining national interests — and sparked protests demanding her resignation. Paetongtarn apologised, saying the call was recorded without her knowledge, but denied wrongdoing and maintained her intent was to ease tensions with Cambodia.
Paetongtarn became prime minister in August 2024 after her predecessor, Srettha Thavisin, was ousted by the Constitutional Court over the similar accusations of lacking integrity and violating ethical standards. The court, set up in 1997, has now ousted five sitting Thai prime ministers linked to Thaksin, including his daughter, sister, and brother-in-law.
The verdict came a week after a criminal court in Bangkok acquitted Thaksin of a royal defamation charge, which was seen by analysts as a sign he still had the backing of the establishment.
The legal troubles for the Shinawatras are far from over. Thaksin also faces a decision by the Supreme Court next month over whether he met the conditions of a one-year prison sentence for a corruption conviction. Paetongtarn’s rivals have also targeted her with multiple petitions seeking her ouster at the anti-graft commission and the election agency.
